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Carrefour Reduces Sales Outlook After 1st Half Net Profit Fell

Carrefour SA (CA.FR) said Thursday that its first-half net profit fell due in part to costs and charges related to restructuring, and it cut its sales guidance for the year slightly.

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Net profit was 78 million euros ($93 million) compared with EUR129 million a year earlier. Carrefour confirmed first-half sales including VAT rose 6.2% to EUR43.05 billion. Sales growth was mainly driven by sales outside of France.

Recurring operating income, was EUR621 million, below the consensus of EUR666 million, according to Carrefour. The key metric for the company has been under pressure since the first half of 2014, reflecting margin declines.

Carrefour cut its sales-growth guidance for 2017 at current exchange rates to between 2% and 4%. It previously saw sales growing 3%-5%.

The retailer said full-year results will be affected by "an operating environment that will remain difficult in [the second half] in some countries."

Carrefour said the market was difficult in France due to strong competition. August industry data from Kantar showed that Carrefour had lost market share this summer compared with competitors in France.